Citizens (CIA) vs. China Life Insurance (LFC) Head to Head Contrast

Citizens (NYSE: CIA) and China Life Insurance (NYSE:LFC) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Institutional & Insider Ownership

20.8% of Citizens shares are owned by institutional investors. Comparatively, 0.3% of China Life Insurance shares are owned by institutional investors. 0.1% of Citizens shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

China Life Insurance pays an annual dividend of $0.27 per share and has a dividend yield of 1.9%. Citizens does not pay a dividend. China Life Insurance pays out 29.0% of its earnings in the form of a dividend.

Profitability

This table compares Citizens and China Life Insurance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Citizens -16.02% -16.81% -2.44%
China Life Insurance 6.27% 12.27% 1.38%

Valuation and Earnings

This table compares Citizens and China Life Insurance’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Citizens $252.62 million 1.61 -$38.12 million N/A N/A
China Life Insurance $105.48 billion 0.75 $4.77 billion $0.93 15.06

China Life Insurance has higher revenue and earnings than Citizens.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Citizens and China Life Insurance, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Citizens 0 0 0 0 N/A
China Life Insurance 2 1 7 0 2.50

China Life Insurance has a consensus target price of $13.85, indicating a potential downside of 1.14%. Given China Life Insurance’s higher probable upside, analysts clearly believe China Life Insurance is more favorable than Citizens.

Volatility and Risk

Citizens has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500. Comparatively, China Life Insurance has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500.

Summary

China Life Insurance beats Citizens on 9 of the 13 factors compared between the two stocks.

Citizens Company Profile

Citizens, Inc., through its subsidiaries, provides life insurance products in the United States and internationally. It operates through two segments, Life Insurance and Home Service Insurance. The Life Insurance segment offers ordinary whole life, burial insurance, pre-need policies, and accident and health related policies, as well as credit life insurance and final expense policies to middle and lower income families, and individuals in the Midwest and Southern United States; and whole life and endowment policies to international residents. This segment offers its products through third-party marketing organizations and independent marketing consultants. The Home Service Insurance segment provides pre-need, final expense, and ordinary and industrial life insurance services; and annuities, as well as limited liability property policies to middle and lower income individuals in Louisiana, Mississippi, and Arkansas. This segment markets its products through funeral homes and independent agents, as well as through a home service marketing distribution system. Citizens, Inc. was founded in 1969 and is headquartered in Austin, Texas.

China Life Insurance Company Profile

China Life Insurance Company Limited, together with its subsidiaries, operates as a life insurance company in the People's Republic of China. The company operates in four segments: Life Insurance Business, Health Insurance Business, Accident Insurance Business, and Other Business. It offers individual and group life, annuity, accident, and health insurance products, as well as provides pension products. The company is also involved in reinsurance business; the asset management, fund management, and health management activities; retirement properties investment; and provision of financial services. It sells its products through agents, direct sales representatives, and dedicated and non-dedicated agencies. The company was founded in 1949 and is headquartered in Beijing, the People's Republic of China. China Life Insurance Company Limited is a subsidiary of China Life Insurance (Group) Company Limited.

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